Cabinet Council postpones Kardemir's outstandings

Cabinet Council postpones Kardemir’s outstandings

As per latest decisions of Cabinet Council, the financially troubled Turkish steel mill Kardemir will receive a postponement of upto 10 years for payment of state economic enterprise (SEE) outstanding debts. Handing over the management to an independent decision-making team, a working scheme will be structured. This scheme will be subject to the approval of both Turkish Treasury and Privatization Administration. Under this working scheme repayment schedules will be prepared for closing down debts to local and foreign banks and companies as well as state economic enterprises. Due dates of state economic enterprise outstandings will be extended upto 10 years and Kardemir will be granted a 3-year grace period. As of today, the company will be able to receive all types of goods and services from related institutions such as state railways and mines and effect 50% payments on due dates and the balance within a year. In the case of achieving a positive outlook through the feasibility study to be carried out by Turkish Development Bank, a TL loan equivalent of $20mio will be granted to Kardemir.